What Are the Licenses & Permits Required to Start a New Business?

by Leslie Truex, Demand Media

Business permits are an important requirement for a new small business.

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While entrepreneurship is a symbol of Americans' individual spirit, it still requires registration with a variety of government agencies before the first customer is served. Starting a small business is a complex process that requires research, planning and paperwork. Common applications include a business license, sales tax permit and zoning permits. Many fields, such as construction or human services, require additional permits as well.

Business Permit

Most business permits are provided by cities or counties that the business will operate in. For example, in Houston a business would need to apply for a commercial permit from the city's Regulatory Services, Commercial Permitting and Enforcement, department.

Specialized Business Permits

Some businesses require additional permits beyond just a business permit. Businesses that provide food usually need a permit from the health department. Restaurants need permits to serve alcohol as well. Groomers and child care or heath care providers often need additional permits, as do builders. In Houston, permits are also required for street vendors, antique dealers, dance studios, game rooms and mini-warehouses.

Building/Zoning Permits

Building construction, remodeling or making alterations to an existing building or changing the use or occupancy of a building all require permission, usually from the local city or county building office. In Houston, zoning permits are also required for adding or changing driveways or sidewalks, or building fences more than 8 feet tall.

Sales Tax Permits

Businesses that sell tangible goods are required to charge sales tax that is then paid to the state. Sales tax permits are usually issued at the state level.

Additional Business Registrations

Aside from permits and licenses, most businesses are also required to register as corporations with the state. "Doing business as" or "fictitious name statements" are registered with the local business office.

About the Author

Leslie Truex has been telecommuting and freelancing since 1994. She wrote the "The Work-At-Home Success Bible" and is a career/business and writing instructor at Piedmont Virginia Community College. Truex has a Bachelor of Arts in psychology from Willamette University and a Master of Social Work from California State University-Sacramento. She has been an Aerobics and Fitness Association of America certified fitness instructor since 2001.

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